During September 2018, a high net-worth individual, with whom Avalon had worked previously, asked the Consultancy to undertake a review of an investee company involved in retail and digital used car sales. The senior management team (SMT) was led by a young entrepreneur who had started his company when at university; Avalon’s client had recently invested in the business with an eye to focus on the digital side and early development of the interfaces, followed by rapid growth.
Avalon assessed the three-man SMT, using a combination of structured interviews and personal profiling. The Consultancy concluded that the proposed rates of development and growth would require additional resources, both management and financial, if the demanding goals were to be achieved. In addition, Avalon advised that the SMT would require more input and guidance from the Investor in his role as Chairman.
In its report to the Investor, the Consultancy cautioned against the possibility that the outcome could be binary – namely if the digital developments were both timely and successful, the company would have a USP. On the other hand, if the software developments were not successful or behind time, the business could be left as a ‘me-too’ used car operation.